Cryptocurrency analyst Joao Wedson questioned whether Bitcoin’s bull cycle is over after the market’s recent decline.
Wedson said the 4-year Bitcoin cycle still holds and current price movements are largely in line with historical cycles.
“Some investors are saying that the 4-year BTC cycle is over due to global liquidity. However, the recurrence fractal cycle chart, which has been very accurate since 2015, shows that the cycle is still ongoing,” Wedson said in his statement.
The analyst argued that the Max Intersect SMA model developed by his team has accurately identified all of Bitcoin’s peaks to date, saying: “It is surprising that this model has accurately captured the ATH level in each cycle. The question is: will it reach this cycle as well?”
Wedson recalled the market deleveraging process that took place in 2021, recalling that Bitcoin quickly reached a new all-time high during the period when many altcoins reached their peaks.
He also noted that on-chain data always provides strong signals and that the recent major selloff does not indicate that the market cycle is ending, but rather that it is continuing.
Some of the points made by Wedson are:
- There is no general enthusiasm in the market yet.
- Some metrics still suggest a new all-time high (ATH) is possible.
- The total value of the cryptocurrency market is still less than Nvidia’s market capitalization, meaning the sector still has growth potential.
- Mining fees and other on-chain data are at very low levels.
Wedson concluded his statement with the following statements:
“It would be a mistake to think that the market ended solely because of a major selloff. Historically, such moves have typically created bottoms. The resurgence of Bitcoin’s dominance suggests that the market could continue for a while, perhaps only a month or so.”
*This does not constitute investment advice.